[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
September 25, 2020
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director(Securities Code: 8963)
Asset Manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, President & CEO
Contact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Performance Update for August 2020
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
As announced in “Notice concerning Conclusion of Memorandum of Understanding to Amend
the Fixed-term Building Lease and Property Management Agreement pertaining to the rent
conditions for the period from July to September, 2020 with Major Tenant” dated September 11,
2020, INV entered into a Memorandum of Understanding (“MOU”) to amend each fixed-termbuilding lease and property management agreement pertaining to the rent conditions for theperiod from July 1, 2020 to September 30, 2020 for domestic hotels owned by INV with INV's
main tenant, MyStays Hotel Management Co., Ltd. (“MHM”) and its affiliates ("MHM Group"),
who operate the hotels. Under the MOU, we have partially changed the rent payment
conditions for the three months and changed the fixed rent payment amount and the variable
rent calculation method. For details on the MOU, please refer to the above press release.
As for the 73 hotels that are operated by MHM Group, the amount of the employment adjustment
subsidy for August 2020 has not been determined as of today. As a result, GOP1 and NOI2,3
for August 2020 have not been determined yet.
The following are the details by segment.
2. Hotel Assets Overview(1) Domestic Hotels
The domestic hotel portfolio4 performance for the month of August 2020 has shown yearThis English language notice is a translation of the Japanese-language notice released on September 25, 2020 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

1over-year declines in Occupancy of 48.3pt, ADR of 27.2%, and RevPAR of 65.8%.
NOI3 for August 2020 is TBD as explained above.

The

The weak domestic hotel demand for August 2020 stems primarily from the pronounced
impact of the COVID-19 pandemic that has caused a significant reduction in demand forhotels due to the sharp decline in domestic and global travel. The constant news flow andgovernment warnings have contributed to a shift in mindset to refrain from business trips
and leisure travel. JNTO reported that inbound visitors declined by 99.7% in August (yearover-year).
In response to the significant reduction in hotel demand due to the COVID-19 pandemic,
MHM is taking steps to reduce hotel operating expenses by reviewing its operational strategy.
Specific measures include the suspension of non-essential capital expenditures, receiving
government subsidies, cutting payments to service providers such as cleaning vendors,
significantly reducing marketing expenses, and a reduction in utility usage. MHM isfocusing on creating new demand, including the provision of day-use telework environments
to provide individuals and corporates with a comfortable telework space as well as
accommodation demand associated with the 14-day voluntary quarantine period after
returning to Japan. In addition, MHM is focusing on capturing the gradual recovery indomestic leisure and business demand, as well as implementing strict measures to preventthe spread of COVID-19 such as sanitizing and ventilating guest rooms, reception desks,
restaurants, and other common areas. As a result of these efforts, the total GOP1 of 73
properties operated by the MHM Group has been in the black since June 2020.
As for the temporary closure status of domestic hotels owned by INV, all hotels except one
have reopened as described in Appendix 1. APA Hotel Yokohama-Kannai has been used
as an accommodation and medical facility for people with mild COVID-19 cases sinceAugust 4.
Although State of Emergency declarations issued by various prefectures were graduallylifted and some progress has been seen in measures against the spread of COVID-19, there
is no certainty around the timing of the eradication of the new coronavirus at this stage. The
Japanese government is taking proactive measures in the fight against COVID-19 andannounced in August 2020 the aim to procure enough vaccines for everyone in Japan by
the first half of 2021. For the time being, it will take time for hotel operations to recover to
pre COVID-19 levels. Therefore, we are forecasting RevPAR in September 2020 todecrease by approximately 60% year-over-year.

This English language notice is a translation of the Japanese-language notice released on September 25, 2020 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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Table below shows the KPIs for each area of the 75 domestic hotels portfolio4.
Occupancy Rate5Area

ADR (JPY)6

RevPAR (JPY)7Tokyo 23 Wards

29.5%

5,301

1,563

Greater Tokyo (ex. Tokyo 23 Wards)

59.7%

9,952

5,941

Chubu

43.3%

7,076

3,064

Kansai

26.2%

4,477

1,174

Kyushu

42.8%

7,956

3,404

Hokkaido

45.3%

8,596

3,891

Other domestic

64.6%

21,782

14,079

Total

43.0%

9,247

3,972

(2) Cayman Hotels
In reaction to the closure of the Owen Roberts International Airport in Grand Cayman by the
Cayman Islands government, the Cayman Hotels have been closed since late March andare expected to reopen on November 1, 2020 at the earliest, while two restaurants reopened
to serve local customers from June 19.
The NOI3 for August 2020 and the NOI3 on a cumulative basis for the December 2020 fiscal
period (July to December) decreased significantly.
3. Residential Assets Overview
The residential portfolio8 in-place occupancy rate as of the end of August 2020 was 94.4%,
a year-over-year decrease of 2.1pt. The rent increase program continues to show positive
results as the average in-place rent per tsubo as of the end of August 2020 increased by
1.2% year-over-year. NOI9 for the residential portfolio in August 2020 increased by 0.3%
year-over-year and increased by 0.4% year-over-year on a cumulative basis for the
December 2020 fiscal period (July to December).
Rents, compared with those based on the immediately preceding leases, increased by 0.9%
for new leases, 1.0% for renewal leases, and 1.0% for new and renewal leases combined
for the December 2020 fiscal period. INV achieved a rent increase on 33.1% of lease
contract renewals for the December 2020 fiscal period. The retention rate for the existing
tenants continues to be high at 85.2% for the December 2020 fiscal period.
4. Performance(1) 75 Domestic Hotel Properties4
August2020(A)

August
2019
(B)

(A－B)

YoY
ChangeOccupancy Rate5

43.0%

91.3%

-48.3pt

ADR (JPY)6

9,247

12,708

RevPAR (JPY)7

3,972

Gross Revenue(JPY million)10

2,713

Cumulative (Jul.-Dec.)
2020
(C)

2019
(D)

(C－D)

YoY
Change-52.9%

41.8%

90.7%

-49.0pt-54.0%-3,461-27.2%

8,122

11,773-3,650-31.0%

11,597-7,625-65.8%

3,392

10,682-7,290-68.2%

7,142-4,429-62.0%

4,652

13,340-8,687-65.1%

This English language notice is a translation of the Japanese-language notice released on September 25, 2020 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

3(2) Cayman Hotels
August2020(A)

August
2019
(B)

(A－B)

YoY
ChangeCumulative (Jul.-Dec.)
2020
(C)

2019
(D)

(C－D)

YoY
Change

0.0%

73.5%

-73.5pt-100.0%

0.0%

80.2%

-80.2pt-100.0%ADR (USD)6

0

252

-252

-100.0%

0

280

-280

-100.0%

RevPAR (USD)7

-0

185

-

-

0

225

-225

-100.0%Gross Revenue(USD thousand)

158

5,176

-5,017-96.9%

370

12,366-11,995-97.0%

August2020(A)

August
2019
(B)

(A－B)

YoY
ChangeCumulative (Jul.-Dec.)
2019
(C－D)
(D)

YoY
Change

94.4%

96.5%

-2.1pt

-2.2%

94.7%

96.4%

-1.7pt

-1.7%

9,173

9,063

+110

+1.2%

9,149

9,073

+76

+0.8%

Occupancy Rate5(3) 60 Residential Properties8

Occupancy Rate
Rent per Tsubo
(JPY)

2020
(C)

5. Portfolio NOI
2019 Simulated

NOI2,3 (JPY million)

NOI11
August(JPY
million)

Ratio

2020

Cumulative (Jul.-Dec.)
YoY

2019

Change

2020

YoY

2019

ChangeTokyo 23 Wards

5,980

19.4%

-

-

-

-

-

-

Greater Tokyo (ex. Tokyo 23 Wards)

4,094

13.3%

-

-

-

-

-

-

Greater Tokyo – Subtotal

10,075

32.7%

-

-

-

-

-

-

Chubu

2,791

9.1%

-

-

-

-

-

-

Kansai

1,775

5.8%

-

-

-

-

-

-

Kyushu

2,315

7.5%

-

-

-

-

-

-

Hokkaido

3,442

11.2%

-

-

-

-

-

-

Other domestic

2,700

8.8%

-

-

-

-

-

-

Domestic Hotel – Subtotal

23,100

75.0%

-

-

-

-

-

-

Residential

3,281

10.6%

274

273

+0.3%

548

546

+0.4%

Commercial

368

1.2%

30

31

-2.2%

61

62

-1.1%

Domestic Asset – Subtotal

26,750

86.8%

-

-

-

-

-

-

Overseas

4,070

13.2%

-148

145

-

-286

446

-

Total

30,820100.0%

-

-

-

-

-

-

(Note 1) GOP means the gross operating profit, and is the amount remaining after deducting costs of hotel operations (thepersonnel, utility and advertising expenses and other expenses) and the management services fee to operators (if any)
from the hotel’s revenues.

This English language notice is a translation of the Japanese-language notice released on September 25, 2020 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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(Note 2) Based on all properties held as of the end of August 2020, excluding 9 hotels with fixed-rent lease agreements. 9 hotels
with fixed-rent lease agreements are D29 Super Hotel Shinbashi/ Karasumoriguchi, D33 Comfort Hotel Toyama, D36
Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37 Super Hotel JR Ueno-iriyaguchi, D39 Comfort Hotel Kurosaki,
D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami, and D48 Takamatsu Tokyu
REI Hotel. NOI includes a simulated amount of dividend income from Kingdom TMK (the “TMK”) that owns Sheraton
Grande Tokyo Bay Hotel as an underlying asset. The fiscal periods of the TMK are semi-annual periods from April 1 to
September 30 and from October 1 to March 31 every year, and INV will receive the dividend within three months from theend of each semi-annual fiscal period of the TMK. Since INV does not receive a dividend from the TMK on a monthly
basis, the amount of dividend INV receives from the TMK for each month is a simulated figure, which is calculated bydeducting (i) simulated expenses such as operating expense of the TMK and the interest of debt (calculated dividing thebudget of the TMK for the fiscal period that includes the relevant month by the number of months in such fiscal period)
from (ii) NOI based on the performance of Sheraton Grande Tokyo Bay Hotel in the month which is three months before
the target month for this performance disclosure and multiplied by INV’s ownership ratio of the preferred equity interest in
the TMK (49.0%). The revenue from the Cayman Hotels is calculated at the exchange rate of US$1 to ¥110.
Furthermore, NOI is provisional figure and subject to change when it is determined at financial closing; hereinafter thesame.
(Note 3) NOI figures before acquisition by INV is based on the data obtained from third-parties including previous owners, and are
subject to change caused by the adjustments based on differences in accounting treatments, since it is difficult to adjust
them due to the timing even if the figures are based on actual performance; hereinafter the same.
(Note 4) Based on 75 hotel properties; of the 84 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of preferred equity interest held by INV) held as of the end of August 2020, 9 hotels with fixed-rent leaseagreements are excluded. As for Sheraton Grande Tokyo Bay hotel, NOI is based on the figure for the month which isthree months prior to the target month for this performance disclosure as INV will receive the dividend from the TMK within
three months of each fiscal period end for the TMK as described above. However, in consideration of seasonality, figuresother than NOI in the table above are based on the figures for August 2020; hereinafter the same.
(Note 5) “Occupancy Rate” for hotel portfolio is calculated using the following formula:room occupancy rate = total number of rooms occupied during the relevant period ÷ (aggregate number of rooms during
the relevant period x number of business days during target period)(Note 6) “ADR,” or Average Daily Rate, is the value of the total room sales for a certain period (excluding service fees) divided by
the total number of sold rooms for the same period.
(Note 7) “RevPAR,” or Revenues Per Available Room, is calculated by dividing the total room sales for a certain period by theaggregate number of rooms for the same period (rooms x number of days), and is the same as product of room occupancy
rate and ADR. However, RevPAR for Cayman Hotels in August was negative because of a reversal of account of room
sales to refund payments to guests and other factors caused by the closure of the hotels.
(Note 8) Based on 60 properties held by INV as of the end of August 2020.
(Note 9) NOI excludes one-off insurance-related revenues and expenses.
(Note 10) Gross Revenue of Sheraton Grande Tokyo Bay Hotel used in the table is the whole gross revenue of such hotel, regardlessof INV’s ownership ratio of the preferred equity interest in the TMK (49.0%).
(Note 11) Based on 148 properties owned by INV as of the end of August 2020, assuming all properties were owned since thebeginning of 2019. Includes the dividend from preferred equity interest of TMK that owns Sheraton Grande Tokyo Bay
Hotel, assuming this dividend contributed throughout the June 2019 fiscal period and the December 2019 fiscal period of
INV. The revenue from the Cayman Hotels is calculated at the exchange rate of US$1 to ¥110.
(Note 12) Percentages are rounded to one decimal place. ADR, RevPAR and Rent per Tsubo are rounded to the nearest yen and
Gross Revenue is rounded down to the nearest million yen.
(Note 13) Cumulative occupancy rate for residential portfolio is calculated by dividing the sum of total leased area by the sum of total
leasable area at the end of each month and the percentages are rounded to one decimal place. Cumulative rent per tsubo
is calculated by dividing the sum of the total rental revenue including common area charges for each month by the sum of
total leased area (tsubo) at the end of each month.
(Note 14) For the details of performance for each hotel asset, please visit INV’s website:
https://www.invincible-inv.co.jp/en/portfolio/hotel.html

Website of INV: https://www.invincible-inv.co.jp/en/

This English language notice is a translation of the Japanese-language notice released on September 25, 2020 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

5

(Appendix 1)<Temporary Closure Status of Hotels Owned by INV>
Property
Number

Property Name

Location

Closed Date

End Date of
Closing Period

D79

MyCUBE by MYSTAYS
Asakusa Kuramae

Taito-ku,
Tokyo

March 8September 30(Planned)

D200

Westin Grand Cayman Seven
Mile Beach Resort & Spa

Cayman Islands

March 22

October 31(Planned)

D201

Sunshine Suites Resort

Cayman Islands

March 22

October 31(Planned)

Hotel That Consolidates
Operations During Close-

D3

Hotel MyStays Kyoto-Shijo

Kyoto-shi, Kyoto

May 1

June 30

D44

Hotel Epinard Nasu

Nasu-gun,Tochigi

April 28

May 31

D48

Takamatsu Tokyu REI Hotel

Takamatsu-shi,
KagawaApril 25

May 31

D53

Hotel MyStays
Sapporo Station

Sapporo-shi,
Hokkaido

March 18

July 17

D65

Art Hotel Ishigakijima

Ishigaki-shi,
Okinawa

April 20

May 31

D66

Hotel MyStays Fuji
Onsen Resort

Fujiyoshida-shi,
Yamanashi

May 1

June 11

D68

Hotel MyStays
Kanazawa Castle

Kanazawa-shi,Ishikawa

April 13

June 30

Hotel MyStays PremierKanazawa

D71

Hotel Nord Otaru

Otaru-shi,
Hokkaido

March 18

June 30

Hotel Sonia Otaru

D75

Hotel MyStays
Sapporo Susukino

Sapporo-shi,
Hokkaido

March 18

July 17

D76

Hotel Mystays
Sapporo Nakajima Park

Sapporo-shi,
Hokkaido

March 18

July 17

D77

Hotel MyStays
Sapporo Nakajima Park Annex

Sapporo-shi,
Hokkaido

March 6

July 17-

Sheraton GrandeTokyo Bay Hotel

Urayasu-shi,
Chiba

April 28

June 29

Hotel MyStays
Sapporo Aspen-

Hotel MyStays Premier
Sapporo Park-

This English language notice is a translation of the Japanese-language notice released on September 25, 2020 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

6